RailTel Corporation of India saw its share price jump by 10% on Wednesday, reaching ₹449 per share, after securing a significant contract valued at ₹79 crore from the Maharashtra Housing and Area Development Authority (MHADA). The order involves establishing, migrating, and managing a cloud-based data centre and disaster recovery site for MHADA, marking another milestone in RailTel's successful year.
Investors are seeing this as an opportune moment to buy shares online, given the company’s steady growth trajectory.
RailTel’s latest order adds to a strong October
This contract represents RailTel's third major order win in October. Earlier in the month, on October 2, the company announced two other substantial contracts with Bangalore Metro Rail Corporation Ltd, totalling ₹142.87 crore. These agreements involve implementing IT network infrastructure at various metro stations and depots, as well as upgrading the CCTV system on Reach 1, complemented by a comprehensive annual maintenance contract (CAMC).
The continuous influx of orders indicates strong operational momentum for the company and is likely to keep investors interested in the stock as RailTel continues to expand its footprint in the information and communication technology (ICT) sector.
RailTel’s growing order book boosts investor confidence
The company closed September with an impressive five new orders, including a major deal worth ₹134 crore from Adani Connex for an Advanced Smart Metering Infrastructure Project. Another notable achievement was securing a ₹48.7 crore order from the Health Insurance TPA of India to develop an integrated claims management solution and a mobile application, with a target completion date set for June 2030.
The consistent flow of contracts has led to a surge in RailTel’s share value this year, with the stock having appreciated by 31% year-to-date. The upward trend follows a successful 2023, during which the company posted a 168% gain in its share price. The recent ₹79 crore order from MHADA further solidifies RailTel's position as a prominent player in the ICT market, potentially encouraging more investors to buy shares online.
RailTel’s financial growth and future outlook
RailTel, classified as a "Mini Ratna (Category-I)" Central Public Sector Enterprise, is recognised for its extensive telecom infrastructure services across India. The company operates one of the country's largest neutral telecom networks, offering a robust optic fibre network that spans urban and rural areas alike.
Established on 26 September 2000, RailTel was originally tasked with modernising telecom infrastructure for the Indian Railways, enhancing train control and safety systems while also generating revenue through a nationwide broadband and multimedia network.
Financially, RailTel has performed admirably, with its net profit for the first quarter of FY25 reaching ₹49 crore, reflecting a 25% increase compared to the ₹39 crore reported in the same quarter of the previous year. Revenue from operations during this period also grew by 19.3% year-on-year to ₹558 crore.
For the entire fiscal year FY24, the company saw a significant improvement, with a 31.55% year-on-year growth in net profit to ₹246 crore. Revenue from operations surged to ₹2,568 crore, representing a 32% increase from the previous fiscal year.
RailTel’s strategic positioning in India’s ICT landscape
With a solid foundation and a growing list of contract wins, RailTel is well-positioned further to strengthen its standing in India's ICT market. The company's recent contract with MHADA and other recent orders are expected to contribute to sustainable long-term growth, appealing to investors looking to capitalise on the stock's upward momentum.
RailTel’s consistent performance and strategic expansion make it an attractive option for those considering an opportunity to buy shares online.
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